The official inflation numbers, be it the consumer price index or the wholesale price index have little or no relation to how much our expenses increase each year. The main reason for this is because the cost of labour/services is not regulated or calibrated. Here is a personal inflation calculator that can help you understand how much the expenses for essential needs have increased year on year. This is the true benchmark for long-term (not short-term) financial goal planning, especially retirement.
As 2016 draws to a close, a look at some of the personal finance developments that made a difference and the lessons from them. Before we begin, allow me to wish you a happy new year and pray for the ability to make informed decisions. If we get that right, the rest should take care of itself.
Also, this weekend Amazon has dropped the hardcover price on You Can Be Rich Too With Goal-Based Investing from Rs. 375 to Rs. 266 (prime) and Rs. 306 (normal). Infibeam also is at an attractive Rs. 278 The Kindle edition is also available at a discount of 30% at Rs. 244.30 The Google Play Book edition also has the same price. Do consider picking one for yourself or gift it someone who may need it. If you have read it/used the online calculator modules, we would be delighted if you can spare a few minutes to write a short review at Amazon or Infibeam.
Each December, I conduct a personal financial audit. I take stock of my financial goals and other aspects of personal finance relevant to me. For the last three years, I have been sharing the gist of such audits at freefincal.
The idea behind doing is this to put some context into the several goal based investing posts that I do, not to brag or show. I think the DIY investing community should share generic information on strategies for mutual benefit. And I have always benefited from reader feedback.
Here are few charts based on a systematic investment in gold. I did this primarily to satisfy my curiosity after a similar study with S & P 500 and Nifty: Buying "low" vs Buying "systematically: Surprise, Surprise!
Regular readers may be well aware of my stand on gold: that it is riskier than Stocks! I had also suggested understanding risks is crucial before buying bonds: Sovereign gold bonds: What you need to know before buying
The idea behind this post is not to boast or claim how intelligent my investing strategy is. It is only to study volatility and perhaps point out that simple solutions are enough to achieve early financial freedom.